Understanding wage schedules -- or how you get paid -- as an apprentice

One of the biggest selling points of an apprenticeship is that you get paid to learn. Many apprenticeships market themselves even market themselves as Earn and Learn more than they use the phrase" apprenticeship". That's because getting paid and having a job are fundamental selling points when comparing apprenticeships with college.

But how exactly do apprentice wages work? Let’s break down so you know you can expect from your paycheck — and how it grows as you gain experience.

How Apprentice Pay Works

Every apprenticeship is required to have three things -- on-the-job training, related instruction, and a wage schedule. A wage schedule is a predetermined set of wage increases that apprentices earn as they pass milestones in their apprenticeship. Most apprentices start you off at a fraction of what a fully trained worker, ie. journey worker, would earn. If the journey worker's wage is X, apprentices might start off earning 50% of X. 50% may not always sound like a good deal, but as an apprentice, you likely have 0-20% of the experience of that journey worker. 50% of their pay is pretty solid.

Wage Increases

Now, you're not stuck at 50% forever. When the apprenticeship registers with the government, they have to predetermine milestones and increases in their wage schedule. What this means is, as you gain experience, you get raises. These bumps are traditional tied to time spent on-the-job training. For example, you might be in a 4 year, 8,000 hour OJT apprenticeship. In that case, every 1,000 or 2,000 hours, you'll likely get a raise. After 6 months, you're making 55% of journey. After 1 year, 60% of journey, and so on.

This is slightly different depending on the apprenticeship. Some of them will grant increases only if you've also completed the requisite course hours. Others, will grant the increase but only have a monthly or quarterly committee meeting. Others do not track time at all so your wage increases are tied to increases in your apprenticeship competencies. Regardless of the markers, the raises are built-in. As you gain experience, your pay goes up.

Wage Benchmarks

While not true in every state, many states also have minimums for the apprenticeships. Many states enforce a prevailing wage baseline for journey worker pay that impacts pay for their apprenticeships. So, what happens is this wage schedule is determined when the apprenticeship registers. However, apprenticeships typically don't re-register each year. Instead, they'll often just update what their journey worker wage is based off the new prevailing wage, and all wage earners benefit -- apprentices included.

Hold Backs

There are some things that can hold you back from getting your wage bump. We've worked with electrical apprenticeships that administer an annual exam. If you don't pass that exam, ie, you're not operating in good standing in your apprenticeship, you might get held at your wage level despite your hours.

All of this is spelled out clearly when you start your apprenticeship so there shouldn't be any surprises.

Comparison with Entry-Level Job

Most potential apprentices are weighing whether it's all worth it. You're likely going to earn less in the short-term than an entry-level job. The benefits, however, outweigh the cost long-term:

• You're not only working. You're also earning an education at no cost.

• You know exactly what it takes to get a raise, unlike most entry-level jobs

• Your lifetime earnings are simply higher post-apprenticeship than not

• You often have a variety of additional benefits in the apprenticeship -- healthcare, transportation stipends, PPE, etc.

We will not sugarcoat the fact that the first 90 days of an apprenticeship can be tough, but the long-term payoff is well worth it.

Benefits and Extras

Since we touched on it, there are many benefits typically offered to apprentices in addition to pay, including:

• Healthcare and retirement plans (often through unions or employers)

• Overtime pay if you work extra hours

• Tuition coverage for any required classroom training

• Some include travel, childcare, and equipment stipends, too.

How to Maximize Your Earnings

Now, as for how to maximize your earnings in your apprenticeship. Step 1, stick with the program. Quitting early means leaving future raises on the table. Two, track your hours and courses carefully. This is a key part of being an apprentice! Be accountable for your own work. Don’t miss credit for work you’ve done. Keep learning – The faster you pass milestones, the faster you progress.

Apprenticeships might start with modest pay, but the built-in raises and career trajectory make it a smart long-term move. Stick with it, and within a few years, you’ll be earning a professional wage without the student loan debt.